Exeter-based Flybe has announced it will be cutting 500 jobs; this is despite reporting a return to profit. We answer five questions on the airlines decision.
Why is Flybe cutting jobs?
It appears to be part of the company’s plan to make £40m of savings this year and £45m in 2014-15. The company said the new round of job cuts, which follows 300 announced in January, will save Flybe £7m this year and £26m next year.
How many people does the company employ?
Flybe employs 2,700 staff. It cut 490 jobs in 2012-13, with a further 100 going in the first half of 2013-14. Flybe chief executive Saad Hammad, told the BBC he could not say where the job losses would fall at this stage. “We’re consulting with unions and our staff,” he said.
What has been the reaction to the job losses?
Pilot’s union, Balpa, told the BBC it was “shocked” by the decision to cut jobs.
What else has Flybe said?
“Unfortunately there is a proposal for further redundancies,” Hammad told The Telegraph. “We will consult with the trade unions and employees to ensure that this is done fairly and delivers the right outcome for the business. “We will make Flybe the best local airline in Europe. This is ambitious, but achievable provided that we can transform our cost base and efficiency now.”
What pre-tax profits has Flybe reported?
The company’s pre-tax profits were up £13.8m for the six months to 30 September, compared with a loss of £1.6m a year earlier. Its revenue rose 3 per cent to £351.1m and the company said it saw a 5.6 per cent increase in passengers in the period to 4.3m, and the average revenue per scheduled seat had risen slightly to £50.35.